Sherwin-Williams Q1 2024 Results In Line With Flat Market

The Sherwin-Williams Company’s financial results for the first quarter ended 31 March 2024 reveal consolidated net sales decreased 1.4 per cent to US$5.37 billion.

Diluted net income per share increased 7.1 per cent to US$1.97 per share compared to US$1.84 per share in the first quarter of 2023. Adjusted diluted net income per share increased 6.4 per cent to US$2.17 per share compared to US$2.04 per share in the first quarter 2023. EBITDA in the quarter increased two per cent to US$896.2 million, or 16.7 per cent of net sales.

The company used US$58.9 million in net operating cash during the first quarter of 2024 mainly as a result of seasonal increases in working capital requirements, partially offset by net income. This net operating cash usage was funded through an increase in short-term borrowings. Sherwin-Williams returned cash of US$728 million to shareholders in dividends and repurchases of 1.7 million shares of common stock during the quarter.

On 31 March 2024, Sherwin-Williams had remaining authorisation to purchase 37.9 million shares of its common stock through open market purchases.

“In what is a seasonally smaller first quarter and with continued demand choppiness in several end markets, Sherwin-Williams delivered consolidated sales within our guided range, gross margin expansion and diluted earnings per share and EBITDA growth,” said Heidi Petz, President and Chief Executive Officer of Sherwin-Williams. “We also continued to execute our capital allocation strategy by investing US$546 million in share repurchases and increasing our dividend 18.2 per cent in the quarter.”

Petz said Performance Coatings Group sales were in line with expectations as demand remained variable by business and region, adding that Auto Refinish sales were “flat against a mid-teens comparison”.

“Segment margin improved year-over-year for the fifth consecutive quarter,” added Petz. “In all segments, we continued to execute on our priorities, which we expect will drive increasing momentum as the year progresses.”

Nevertheless, Petz expects second quarter 2024 consolidated net sales to be flat to up a low-single digit percentage compared to the second quarter of 2023. Guidance for the full year 2024 is unchanged, with consolidated net sales expected to be up a low to mid-single digit percentage compared to full year 2023.